Statement Of Comprehensive Income Discontinued Operations

Discontinued operations are listed separately on the income statement because it s important that investors can clearly distinguish the profits and cash flows from continuing operations from those.

Statement of comprehensive income discontinued operations. The following is a historical example from the dot com era to demonstrate how continuing operations and discontinued operations might arise on the income statement. But don t depend solely on it. An entity is required to present a statement of comprehensive income either in a single statement or in two statements comprising a separate income statement and statement of comprehensive income. A company s income statement summarizes the revenues expenses and profits for an accounting period.

A discontinued operation is a separate major business division or geographical operation that the company has disposed of or is holding for sale. Additional discontinued operations disclosure rules. Ifrs 5 non current assets held for sale and discontinued operations require entity to report any gains or losses from discontinued operations as a single post tax net of tax line item in the income statement after computation of profit from continuing operations. Total comprehensive income and expense for the year attributable to shareholders of the parent continuing operations 1 233 1 127 shareholders of the parent discontinued operation 206 non controlling interests 97 106 total comprehensive income and expense for the year net of tax 1 330 1 027 50 iag annual report 2014.

Viacom and simon schuster in the 1990s viacom owner of mtv vh1 and nickelodeon purchased paramount studios. Disclose the results from discontinued operations on the income statement or in accompanying notes. Income or loss from discontinued operations is a line item on an income statement of a company below income from continuing operations and before net income. Detailed disclosure of revenue expenses pre tax profit or loss and related income taxes is required either in the notes or in the statement of comprehensive income.

If there were adjustments for disposal related amounts previously reported for discontinued operations they should be classified separately within the discontinued operations section of the income statement in the current period. Examples of these adjustments are. A statement of comprehensive income is the overall income statement that consolidates standard income statement which gives details about the repetitive operations of the company and other comprehensive income which gives details about the non operational transactions such as the sale of assets patents etc. Such presentation help users assess financial performance better.